SIP Calculator: Estimate What Your Monthly Investment Could Grow To
A Systematic Investment Plan (SIP) invests a fixed amount every month. This calculator estimates the future value of a SIP for an expected annual return. The return is an assumption you choose, not a promise.
Estimates for general information. This is not financial advice.
More Finance & Money calculators
View all 10You may also need
From related categoriesHow to use this calculator
- Enter the amount you invest each month.
- Enter the annual return you expect. Try a few values, such as a cautious and an optimistic one.
- Enter the number of years.
- Read the invested amount and estimated returns.
The formula
Worked example
₹5,000 a month at 12% a year for 10 years: n = 120 and i = 0.01. You invest ₹6,00,000 and the estimated value is about ₹11,61,695, so estimated returns are about ₹5,61,695.
Understanding your result
Because you invest regularly, early instalments grow the longest. Most of the final value in long SIPs comes from compounding, not from the amount you put in. Real returns will vary year to year and can be negative.
When to use it
- Set a monthly investing target for a goal such as education or a house.
- Compare how different return assumptions change the outcome.
- See the effect of starting five years earlier.
In-depth guide
How a SIP grows year by year
A SIP invests the same amount every month. Each instalment starts earning from the day it is invested, so early instalments have the longest time to grow. The table follows the example on this page: ₹5,000 a month at an assumed 12% a year.
| After | You invested | Estimated value | Estimated gain |
|---|---|---|---|
| 1 years | ₹60,000 | ₹64,047 | ₹4,047 |
| 3 years | ₹1,80,000 | ₹2,17,538 | ₹37,538 |
| 5 years | ₹3,00,000 | ₹4,12,432 | ₹1,12,432 |
| 7 years | ₹4,20,000 | ₹6,59,895 | ₹2,39,895 |
| 10 years | ₹6,00,000 | ₹11,61,695 | ₹5,61,695 |
Notice that the gain in the last three years is far larger than the gain in the first three, even though you invested the same amount each month. That is compounding at work, and it is why staying invested matters.
What different return assumptions mean
Nobody knows the return in advance, so treat any single number with care. The table shows the same ₹5,000 a month for 10 years under different assumed yearly returns.
| Assumed return | Invested | Estimated value |
|---|---|---|
| 6% | ₹6,00,000 | ₹8,23,494 |
| 8% | ₹6,00,000 | ₹9,20,828 |
| 10% | ₹6,00,000 | ₹10,32,760 |
| 12% | ₹6,00,000 | ₹11,61,695 |
| 15% | ₹6,00,000 | ₹13,93,286 |
Use a cautious figure for planning. If the market does better, the extra is a bonus. If it does worse, you are still prepared.
The cost of starting late
Time in the market often matters more than the amount. The table compares ₹5,000 a month at 12% a year for different periods.
| Period | Invested | Estimated value |
|---|---|---|
| 10 years | ₹6,00,000 | ₹11,61,695 |
| 20 years | ₹12,00,000 | ₹49,95,740 |
| 30 years | ₹18,00,000 | ₹1,76,49,569 |
Going from 20 to 30 years raises the amount invested by 50% but the estimated value by about 3.5 times. Starting early lets the money compound for longer.
Tips for using a SIP well
- Match the SIP period to your goal. Money needed within a few years is usually not suited to volatile investments.
- Raise the amount whenever your income rises. Even a small yearly increase makes a large difference over many years.
- Do not stop during market falls only because the value has dropped. A SIP buys more units when prices are low.
- Check the expense ratio and the fund's record over several market cycles before you choose a fund.
What this estimate does not show
The result is a projection at a fixed return. Real returns move up and down from year to year, and a market-linked investment can lose value. Tax on gains, exit loads and expense ratios are not included. Treat the figure as a planning aid, not a promise.
Assumptions and limits
Assumes a constant return, investment at the start of each month and no charges. Expense ratios, exit loads, taxes and market volatility are not included. Market-linked returns are not guaranteed.
Frequently asked questions
Is the SIP return guaranteed?
No. Mutual fund returns depend on markets and can be lower than the rate you enter, or negative.
What return should I enter?
Use a cautious figure and test a range. This tool cannot predict returns.
Are taxes and fees included?
No. Expense ratios and taxes reduce the real return.
Does it assume investing at the start or end of the month?
The start of the month.
What if I invest for only part of a year?
Use decimals. For 18 months enter 1.5 years.